An Inquiry Into the Nature and Causes of the Wealth of NationsSmith, Adam
General
An Inquiry Into the Nature and Causes of the Wealth of Nations
Smith, Adam
Economics
In the present season of scarcity, the high price of corn no doubt
distresses the poor. But in times of moderate plenty, when corn is at
its ordinary or average price, the natural rise in the price of any
other sort of rude produce cannot much affect them. They suffer more,
perhaps, by the artificial rise which has been occasioned by taxes in
the price of some manufactured commodities, as of salt, soap, leather,
candles, malt, beer, ale, &c.
_Effects of the Progress of Improvement upon the real Price of
Manufactures._
It is the natural effect of improvement, however, to diminish gradually
the real price of almost all manufactures. That of the manufacturing
workmanship diminishes, perhaps, in all of them without exception. In
consequence of better machinery, of greater dexterity, and of a more
proper division and distribution of work, all of which are the natural
effects of improvement, a much smaller quantity of labour becomes
requisite for executing any particular piece of work; and though, in
consequence of the flourishing circumstances of the society, the real
price of labour should rise very considerably, yet the great diminution
of the quantity will generally much more than compensate the greatest
rise which can happen in the price.
There are, indeed, a few manufactures, in which the necessary rise in
the real price of the rude materials will more than compensate all the
advantages which improvement can introduce into the execution of the
work. In carpenters' and joiners' work, and in the coarser sort of
cabinet work, the necessary rise in the real price of barren timber, in
consequence of the improvement of land, will more than compensate all
the advantages which can be derived from the best machinery, the
greatest dexterity, and the most proper division and distribution of
work.
But in all cases in which the real price of the rude material either
does not rise at all, or does not rise very much, that of the
manufactured commodity sinks very considerably.
Public-domain text, read in full here on John Shaqi.
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